188体育

The deceased鈥檚 interest in land is valued along with other 鈥榬elated鈥� (IHTM09733) land owned by the deceased鈥檚 wife or civil partner (IHTM11032). The deceased鈥檚 interest in the land is valued at 拢40,000 (the 鈥榓ppropriate portion鈥� (IHTM09735)).Its separate value at death would have been 拢30,000. Within 3 years of death it is sold without the other land for 拢25,000. The sale is a qualifying sale for both sales of related property (IHTM09751) and loss on sale of land (IHTM33000) reliefs.

Step 1 鈥� Revalue under loss on sale of land provisions

The value of the interest is adjusted under IHTA84/S195, which applies when an interest inland is valued with, and sold without, other land (IHTM33132).

Actual sale price = 拢25,000

Plus full value of death with related property (拢40,000) less separate value (拢30,000) = +拢10,000

Total 鈥榮ale value鈥� = 拢35,000

Step 2 鈥� Revalue under sales of related property provisions

Although the sale is a 鈥榪ualifying sale鈥� under these provisions, a further condition (IHTM09760) is imposed by IHTA84/S176 (4). In this case the sale price must be adjusted because there was a drop in value from the original separate value of 拢30,000 to the sale price of 拢25,000. As the original valuation 鈥� disregarding both loss on sale of land and sales of related property reliefs - was 拢40,000, the further condition was fulfilled.

The revaluation under IHTA84/S176 (2) is calculated as follows:

Property as revalued at step 1 using the basis of valuation with related property = 拢35,000

Less the adjustment which resulted from using that basis of valuation = 拢10,000

Property as revalued under the loss on sale of land provisions on the basis of valuation without related property = 拢25,000